Working on a Dana 60. It has moser axles and a spool. My question is should the axle move with the retainer bolted in. The axles moves about and 1/8 or better.

I would think not. What's moving? Bearings not being retained and allowed to move? What kind of bearings?

I think they are ones moser sells. The bearing moves in the housing. The bearing has a o ring on it and on the retainer side there is a step in the bearing like it should fit in the retainer.

It should have a retaining clip on the outer race

There is no retaining clip. Everything looks good except for the movement.

Sounds like you have first generation (RP 400) Green bearings with the 5-hole retainer broken off. You probably need a new pair of snap-ring style (MO 400) Green bearings.

You have any pics of what I need . Thanks

I had the same problem. The outer retainer is wider than the bearing race. You can fabricate a spacer shim, but the right way is to install the snap ring style bearing to keep it located.

It's just a bearing with a groove for a snap-ring and a retainer flange separate from the bearing.

It's not a one piece like the old "green" bearings.

Gus